30.06.02
BBC Statement re: ITC report on BBC THREE |
(London, June 2002) - "The ITC's report confirms that the likely impact of BBC THREE on the television market would be 'manageable' within the industry.
"Even after the recent downturn, commercial advertising revenues amount to around £2.9 billion pa, so in fact the ITC's forecast impact of around £7 million after two to three years is very small indeed.
"We note that the report also highlights forecasts that advertising revenues will soon be growing again, further lessening any impact.
"We are pleased that the ITC's report also supports our proposals for BBC THREE. We note their belief that 'there is a strong public service rationale for offering high-quality, distinctive, UK-produced programmes to the target audience' and that they 'recognise the BBC's response to this in, for example, promising more distinctive programming, with an enhanced news component, which would make the channel a valuable addition to the PSB suite'.
"Of course the ITC also warn that a channel without BBC THREE's public service commitments could have a greater impact. But we have made those commitments very publicly and we will keep to them. Indeed, we know that the Governors and the Secretary of State will make very sure that we do.
"We believe BBC THREE will also make an important contribution to driving digital take-up, especially among people who don't want to pay a subscription, at a time when this is much needed.
"We welcome the ITC report and its conclusions, and trust that it will prove useful to the Secretary of State. We hope that she will soon be able to give us consent to launch the new channel."
The ITC report has been published on the DCMS website, http://www.culture.gov.uk/creative/index.html.
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